https://www.taxtmi.com/article/detailed?id=14846 Target-based incentives, discounts and reimbursements paid by a manufacturer to an authorised dealer are not consideration for Business Auxiliary Service where the transaction is a principal-to-principal sale; therefore such receipts are not taxable as service, and attendant interest and penalties founded on a service tax demand are not sustainable. Assessment must focus on contractual substance rather than accounting labels. Under GST, incentives could be taxable only if the dealer is required to perform promotional or marketing activities and the manufacturer is the service recipient. en-us Mon, 21 Jul 2025 08:44:14 +0530 Mon, 21 Jul 2025 08:44:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=14846 Target-based incentives, discounts and reimbursements paid by a manufacturer to an authorised dealer are not consideration for Business Auxiliary Service where the transaction is a principal-to-principal sale; therefore such receipts are not taxable as service, and attendant interest and penalties founded on a service tax demand are not sustainable. Assessment must focus on contractual substance rather than accounting labels. Under GST, incentives could be taxable only if the dealer is required to perform promotional or marketing activities and the manufacturer is the service recipient. Articles Service Tax Mon, 21 Jul 2025 08:44:14 +0530 https://www.taxtmi.com/article/detailed?id=14846